SYDNEY, AUSTRALIA: Gratifii Limited, a leading provider of rewards and incentives solutions, has announced that its subsidiary, Neat Tickets Pty Ltd [Neat Ideas], has signed an agreement to acquire assets from Spendless Buying Advisory Service Pty Ltd for $175,000 in cash on completion.
The acquisition will allow Neat Ideas to expand its existing retail gift card and movie ticket business by providing scale and cross-sell opportunities.
The assets being acquired by Neat Ideas include Spendless’ IP domain names, customer lists, and supplier agreements used by Spendless to sell gift cards and movie tickets to closed-end member groups.
The majority of Spendless’ sales are on the east coast of Australia to corporate and not-for-profit organisations in the medical/hospital industries. Spendless is a leading distributor of bulk gift cards and movie tickets to a range of premium employee and member benefits programs. The assets being acquired generated revenue of $1.8 million in FY22.
Gratifii’s Managing Director and CEO, lain Dunstan, said that the acquisition is expected to accelerate the growth of the company’s movie ticket and gift card business. Dunstan also noted that the assets being acquired are highly complementary to Gratifii, and the company expects to lift margins as a result of its buying power.
The acquisition will provide Neat Ideas with cost-effective acquisition of additional revenue streams, margin arbitrage via Spendless’ distribution channels at Neat Ideas’ commercial terms, and acquisition of new client relationships with premium brands. The acquisition is expected to benefit Gratifii’s existing clients, as well as provide cross-selling opportunities for Spendless’ customers.
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